Ricoh 2014 Annual Report Download - page 23

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Overview Action Data & Prole
Creating New
Customer Value
ISO 26000: • The environment • Consumer issues • Community development
Ricoh Group Sustainability Report 2014 22
• New workstyles and venues
The core business of the Ricoh Group is Imaging &
Solutions, which generates about 90% of consoli-
dated sales. We have built an extensive lineup of
products in this segment, showcasing equipment for
commercial printing, such as production printers, and
a large selection of MFPs, printers and other imaging
equipment for ofce use. This all-round assortment
ofproducts and associated solutions are directed
primarily toward corporate customers.
Today, Imaging & Solutions is on the verge of
ahuge transformation, spurred by changes in the
demand market. Customer needs and workstyles are
evolving,aprocessthatreectsthevigorouspursuit
of M&A opportunities and restructuring to achieve a
sharper competitive edge as well as the appearance
of new trends in society. As a group, we are quick to
respond to emerging developments, but we also cast
a corporate eye to the future, and by anticipating
possible demand scenarios before customers them-
selves may be aware of them, we are able to provide
value that exceeds expectations. This customer-oriented
perspective is what fuels corporate growth.
responses, as management concentrates energy into
new directions, be it more efcient operations or
higher productivity. Against this backdrop, customers
are seeking another kind of value, shifting from
“ownership of products” to “use of services.” This
presents us with the potential to expand our market
presence by going beyond products to new busi-
nesses derived from services and solutions.
In addition, the workplace is being redened by
innovative methods of communication utilizing video,
audio,imagesandotherdataformats,reecting
widespread use of mobile devices—namely, smart-
phones and tablet PCs—and a heightened use of
cloud computing. In this new workplace, people want
to access and share required information and print it
out anywhere as easily and securely as they would in
a conventional ofce.
Upgrading business model to fuel growth
Ricoh understands these market changes and is
working to upgrade its business model for continued
success. We will draw on the global network we have
built so far—a network that encompasses some 200
countries—and our close relationships with customers
to provide products and solutions for document-
related operations and beyond. This will lead to a
stronger and wider revenue base.
For example, in developed countries, workstyles
are evolving at an accelerated pace, which presents a
different set of management issues for our customers
totackle,fromworkowreformsandreducedtotal
cost of ownership to enhanced compliance practices.
We are working on a revenue model that enables us
to provide solutions and services that effectively
address these customer issues.
Meanwhile, in emerging markets that continue to
exhibit tremendous growth, we are expanding our
presence by making MFPs and printers more appealing
to local customers and by raising cost-competitiveness
while reinforcing our sales and service networks. In
addition, emerging markets are likely to undergo rapid
changes similar to those that have taken place in devel-
oped countries, and we are keen to establish a platform
that will support the shift to solutions and services.
Changing customer needs and
workstyles
Today’s socio-economic environment is so much
different than it once was, driven by increased
globalization, growth of emerging economies and
awider embrace of network technologies.
Customers’ business environments are also
changing, which necessitates a different set of
• New business model
Solutions
Management services
Installation and implementation
Products
Consumables and maintenance
Hardware and software
89.7%
(FY2014)
Imaging and Solutions
1,969.8 billion yen
Satellite Office
Customer Site
In Transit
Cloud/Network
Outsourcing Home Office
Ricoh’s core businesses at
a major turning point